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Photo: Sonny Abesamis

Tax justice as an opportunity

Alejandro Rodriguez Llach | July 9, 2020

Es momento de que los Estados apliquen políticas fiscales expansivas con un enfoque progresivo y de derechos humanos, que logren garantizar los DESC de los hogares más vulnerables, y, al mismo tiempo, estimular la economía protegiendo el empleo y la liquidez de las pequeñas y medianas empresas.

 

The countries of the Global South, which were less prepared to protect the rights of their populations during the pandemic, currently face enormous challenges in containing the virus without causing an unprecedented collapse of their economies in the process. This is largely due to two characteristic and fundamental factors: inequality and the limited public resources available.

These two factors have left the governments of these countries facing a dilemma. On one side, if quarantine measures are maintained for a long time, the state has very limited resources to mitigate the economic impacts on the population with lower incomes and greater vulnerability in terms of the effective enjoyment of fundamental rights—impacts that are intensified by their high levels of inequality. On the other side, if social distancing measures are relaxed, high inequality and informality will mean that the most vulnerable socioeconomically disadvantaged people will be the most exposed to the effects of the virus. Both cases present a scenario of evident injustice.

This document aims to briefly address the structural and political economy reasons that have led the countries of the Global South to this situation. It also seeks to propose opportunities and suggestions to mitigate the impacts of the pandemic and to change the dominant paradigm that has shaped the current scenario.


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